U.S. Attorney Announces Another Guilty Plea in AEP Power Surge Scam

To contact us Click HERE

St.Albans Woman is 10th Person to Plead Guilty in Scheme
CHARLESTON, WV—U.S. Attorney BoothGoodwin announced today that a St. Albans woman pleaded guilty in federal courtfor her role in a scheme to obtain money by submitting fraudulent claims forpower surge damage to American Electric Power Service Corporation Inc. (AEP).Karen Hodges, 39, of St. Albans, Kanawha County, West Virginia, entered aguilty plea today before United States District Judge John T. Copenhaver, Jr.,admitting she conspired with others to commit federal mail and wire fraud.Hodges is the 10th defendant to plead guilty in the AEP fraudulent claimscheme.
Hodges admitted she conspired withformer AEP property damage claims adjuster Deborah Farmer to unlawfully obtainmoney from AEP by submitting fraudulent claims for power surge damage. Farmer,47, pleaded guilty in April to conspiracy to commit mail and wire fraud. Farmeradmitted she arranged the scheme and conspired with other individuals tounlawfully obtain money from the power company by submitting the fraudulentclaims.
A two-year investigation revealed thatfalse claims were filed with AEP related to power surge damage to homes. Claimschecks, ranging from $2,000 to as much as $25,000 per fraudulent claim, weremailed to several known individuals, including Hodges, at various times betweenMarch 2009 and March 2010. At her hearing, Hodges admitted she received nearly$37,099 in fraudulent proceeds.
A total of 57 fraudulent claims werefiled resulting in a loss of approximately $598,485.
Hodges faces up to 20 years in prisonand a $250,000 fine when she is sentenced on September 18, 2012.
The nine other co-defendants involved inthe conspiracy have previously entered guilty pleas and are scheduled to besentenced on the following dates:
■Deborah Farmer, 47, formerly ofWinfield, pleaded guilty on April 2, 2012 to conspiracy to commit mail and wirefraud; sentencing set for July 3, 2012;■Julia Washington, 45, of Charleston,pleaded guilty on April 2, 2012 to conspiracy to commit mail and wire fraud;sentencing set for July 3, 2012;■Freda Bradshaw, 47, of Pliny, PutnamCounty, pleaded guilty on April 5, 2012 to mail and wire fraud; sentencing isset for July 9, 2012;■Jonathan Shaffer, 33, of Charleston;Tiffany Shaffer, 24, of Charleston; Bryan P. Javins, 34, of Nitro; and JeanetteBoggs, 58, also of Nitro, each previously pleaded guilty to mail fraud;sentencings are set for August 16, 2012;■Mark Ingram, 42, and Crystal Ingram,32, both of Nitro, pleaded guilty on Monday to conspiracy to commit mail andwire fraud; sentencings are set for September 18, 2012.
The Federal Bureau of Investigation(FBI), United States Postal Inspection Service, and West Virginia State Policeconducted the investigation. Assistant United States Attorney Erik Goes is incharge of the prosecution.